Current Trends in Food and Beverage Sector in Hospitality Industry

This document discusses the current trends in the food and beverage sector in the hospitality industry. It explores the impact of these trends on consumer choice and spending. The document also reviews the current food and beverage offer of The Fat Duck, a renowned restaurant, and provides recommendations for improvement.

Consultancy for Tourism,
Hospitality and Events TLH252
Project 1: Consultancy Report

Table of Contents
2. The food and beverage offer are subject to numerous trends and these trends have an impact
on tourism and hospitality businesses’ success and profitability. It is critically important for
businesses to effectively respond to recent trends in the marketplace.............................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Examine the current literature on key trends in the food and beverage sector in the hospitality
industry........................................................................................................................................4
Reviewing current food and beverage offer of the chosen hospitality business ........................7
Providing recommendations for improvement of their food and beverage offer........................8
Evaluate the impact of new food and beverage trends on consumer choice and spending.........8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

2. The food and beverage offer are subject to numerous trends and these
trends have an impact on tourism and hospitality businesses’ success and
profitability. It is critically important for businesses to effectively respond
to recent trends in the marketplace.
INTRODUCTION
Hospitality is considered as the industry which is concerned with different kinds of sub
sectors. In all such kinds of sub sectors, the companies that are operating need to make sure that
their operations need to derivation of maximum satisfaction from the customers. In this regard,
one of the most prominent sub sectors of hospitality industry is identified to be food and
beverage sector (Camilleri, 2019). Several categories of businesses pertain to food and beverage
sector, inclusive of pub, club, bar, restaurant, cafe, eatery, etc. The basic aim of these
organisations is to provide diverse set of dishes which possess the capability of fulfilling the
demands held by the people prevailing in the market place. The role of management in the same
is acknowledged to be of significance while introducing changes in the premises of the
companies. It is important for organisations to timely introduce changes and align themselves to
the changing market trends so as to stay competitive. With respect to food and beverage sector,
the trends do not just change in accordance with the products and services but also in terms of
technology, systems, quality standards, hygiene standards, and many more.
The hospitality business selected for carrying out this project is The Fat Duck. This is the
finest food and beverage organisation which received 5 Michelin Stars. It is physically present
within the confines of Bray, Berkshire. This restaurant is renowned among people because of its
14 course tasting menu which presents quirky dish like nitro scrambled egg and a dish referred to
as 'Sound of the Sea' that includes listening to an audio for experience along with bacon and egg
flavour ice cream. The current report consists of literature review conducted upon key trends in
F&B sector within hospitality industry and a review of F&B offer of the selected restaurant.
Also, it comprises of evaluation of effects of new F&B trends upon consumer choices and
expenditure. Lastly, recommendations are provided for the enhancement of F&B offer.

MAIN BODY
Examine the current literature on key trends in the food and beverage sector in the hospitality
industry.
Hospitality industry is wide and is contributing a major part in the development and
growth of economy. In addition to this, it is determine that hospitality industry is growing rapidly
and consist of sector such as food and beverage, lodging, entertainment, event planning,
transportation and so on (Camilleri, 2019). Along with this, hospitality industry also involves
bars, hotels and restaurant as well. It is determine that one of the main objective of such industry
is to provide quality and satisfied service to customers. If it is talking about food and beverage
sector, it is one one the major part in hospitality industry and plays vital role in this sector. In
addition to this, it is important for food and beverage companies to satisfy the requirements and
make changes according to the market demand in order to gain success and growth at
marketplace. It is analysed that in food and beverage sector the trends is getting changed
according to the external environment such as technology, customers, market trends, market
demand and many more.
According to Snjezana Gagic, 2017, it is stated that every single individual in the world
relies mainly on the food and beverage sector. With the increase in population and the demand of
customers, the food and beverage industry is continuously adopt it in order to become more
sustainable, energy efficient, health conscious and cost efficient as well (Vogelpohl, 2018). One
of the common thing that is not changed in the food and beverage industry is customer
requirement to get food safer, cheaper and faster. The current food and beverage trends is
discussed below:
Automation: The adoption of automation in food and beverage industry is growing in
order to improve production speed, quality control, overall productivity and labour shortages as
well. There are various benefits gain by food and beverage industry due to automation and these
are improved worker safety, end to end traceability, enhancement of efficiency, better quality
control as well. It is determine that more than 70% of the activities of the workers perform in
food service have the ability or potential for automation and is sometimes based on technical
considerations (Cooper, 2018). In many of the restaurant, human chefs were transformed with
automated cooking machines which have the ability to make at least seven meals within 3
minutes. In addition to this, robot powered restaurant is also opened that decline the number of

service person in restaurants. It is determine that such automation also attract large number of
people and increase the performance of food and beverage sector.
Convenience: As per the international food information council food survey, it is
analysed that around 52% of people said that convenience is a top driver at the time of buying
food and for the baby boomers taste matters. The process of online booking and home delivery is
increasing rapidly and changing the pattern of customers to buy food. Having an online option
offer various options to customer at a single place only and also saves the time of customers.
Heat and eat options, food trucks, meal kits, grocery home delivery, online ordering all allow to
easily and conveniently get their orders in a proper manner (Durand-Bush and DesClouds, 2018).
In addition to this, the number of food delivery applications is also increased rapidly and due to
this the sales of restaurant such as Fat duck is increased in a rapid and effective manner. Meal
kits are marketed to cheaper, healthier and convenient as compare to the traditional meal
preparation. It is determine that around 70% of people in UK prefer to get food at their door step
and using various applications for ordering food in a proper manner. According to the current
scenario of food and beverage sector, convenience will be the key to grab the attention of
customer and attain success in the marketplace.
Authentic - Farm-Friendly organic & natural: There are millions of people who is
struggle with high cholesterol, blood pressure, diabetes, obesity and many more. One of the main
reason of this is unhealthy food and beverage. Nowadays, people are more concerned of their
health and prefer to eat food products that is natural, organic and good for their health as well. It
is determine that in UK one in three people follow a particular diet or an eating program. The
large number of people are turning their buying behaviour to the nutrition labels (Timothy,
2018). They are eager to know what ingredients is contain in the food ad beverage and is food
for their health or not. Most of the restaurant in UK is start offering organic, fresh and natural
food and beverages in order to gain attention of customers and increase their level of sales in an
effective manner. It also help restaurant like Fat Duck to increase the level of customer base and
attain competitive advantage by offering something unique in market. Consumers are getting
more aware of F&B which they put on their bodies that increase the efforts of food producers as
well as restaurants to assist consumers in making healthy decisions (Ivanov and Webster, 2019).
Moreover, it is analysed that consumers are making more research before buying any food and
beverage. The smartphones also help them to easily and quickly search out nutritional and

ingredients information include in the food and beverage so now a days it is getting important for
restaurants to put all the information online or on their websites in a proper manner so that
customers choose their brand which has positive impact on sales and profitability of particular
restaurants in an appropriate manner.
According to the Katie Larrimore, 2019, the food and beverage industry is growing
rapidly and for restaurants it is important to follow all the current trends prevailing in this
industry. There are various current trends of food and beverage industry which are as follows:
Zero-plastic packaging: Nowadays, people are more aware and concerned for the
protection of environment and for this they decline the consumption of polythene packs. In the
food and beverage sector, the main focus is on zero-plastic packaging that not only safeguard
environment but also satisfy people that they are using those things that is good and safe for their
surroundings. It is determine that most of the restaurant in UK shift to zero-plastic packaging that
is good for the environment (Jankowski, 2020). The restaurant such as Fat Duck find out the
alternative of plastic that is grass paper in order to be plastic free. It help company to attract large
number of people and enhance the sales and profitability level in an effective. It is analysed that
this trend will be a major shift in food and beverage industry that has positive impact on
protecting the environment and developing positive mind set of people towards brand.
Quick fix prepared food: It is determine that one of the things that remain unchanged
within the food and beverage industry is customer demand of getting food rapidly, easily and
cheaper as well. The requirement of customer is not changed as they want all the type of food
within short span of time. In addition to this, the preference of customer is changed as they prefer
packed food such as bagged salads, instant fries and so on. This will change the way of
restaurants in offering the food and beverage in a proper manner to customers which satisfy their
needs and wants effectively and properly as well.
Personalised Nutrition: The present age of modern technology allow consumers to
chase aspiration and giving them personalised statistics on exercise, disease markers, eating
habits and many more. Personalised option allow consumer to include the level of nutrient they
want in their food and beverages which is good for their health and maintain diet in a proper
manner. The people are more concerned of their health and this current trends will help food and
beverage sector to gain higher growth within the hospitality industry (May, 2020).

From the above discussion of current trends of food and beverage sector, it is analysed
that it is important for restaurant such as Fat Duck to adopt all such trends as it will help in
attracting large number of people and enhancing market presence of brad in an effective manner.
In addition to this, it also assist respective entity to increase the level of sales and deal with the
changes take place in the demand of consumers prevailing at marketplace. Moreover, it will
assist in sustaining in market for longer time and attaining competitive advantage at marketplace.
Reviewing current food and beverage offer of the chosen hospitality business
The Fat Duck's current food and beverage offer is reviewed in the present context of
market as follows:-
Cleanest offerings: In the wake of coronavirus outspread, a customer will be willing to
visit the restaurant premises only when the organisation takes due measures to maintain the
hygiene and cleanliness (Mitchell and Teti, 2020). In this relation, The Fat Duck has received 5
rating in terms of Food hygiene. The management as well as the employees are made aware of
the need to keep the surroundings clean and hygienic. Thus, the staff focuses upon adoption of
techniques which can result into fulfilment of customer demands related to hygiene maintenance.
Superior quality offerings: The Fat Duck is known among the people for its high
quality offerings. Owing to this, this restaurant received 5 Michelin Stars. Over the course of
time, this restaurant has received a large number of awards like UK's top restaurants, Squaremeal
award for Best UK Restaurant, Squaremeal Award for Restaurant of the Year and UK's Top 100
Restaurants 2018 (Taylor, 2019). The list of awards imply the likelihood of people towards the
offerings of The Fat Duck. This has largely been because of the focus of the entity upon
maintenance of superior quality.
Providing recommendations for improvement of their food and beverage offer
The businesses such as The Fat Duck pertinent to food and beverage industry can take
into due consideration certain recommendations for the improvement of its food and beverage
offer:-
Regular check-ups: It is important in the wake of outbreak of coronavirus that
restaurants like The Fat Duck carry out daily check-ups of their staff members as well as
customers. This will help in early identification of symptoms within any person if expected to be
affected by the virus. Also, it will build a strong image of the respective restaurant within the
market place. More and more people will get influenced to visit their premise and savour the

taste of dishes provided by The Fat Duck. Such level of trust when placed by the customers
within the organisation would result into increment of revenues and profits of the entity in the
long run.
Employment of latest technologies: It is advised that the food and beverage companies
such as The Fat Duck should carry out market research at constant intervals of time in order to
identify potential technological trends. With this, the respective restaurant will be able to arrange
funds and thereby take measures to apply and implement effective technologies and innovations
within the organisational premises (Mulanovich and Kontoyiannis, 2018). This will enable more
operational efficiency and higher revenues for The Fat Duck.
Evaluate the impact of new food and beverage trends on consumer choice and spending
It is evaluated that there is direct impact of current food and beverage trends on the
buying behaviour and level of spending of the customers. It is important for restaurant and cafes
to examine such impact so that they can make strategies accordingly and maintain their sales
level in an effective manner. The impact on customer spending and choice of current F&B trends
is given below:
Authentic - Farm-Friendly organic & natural: It is determine that the choice of
customers are now shift towards organic, fresh and natural food and beverages. They are ready to
spent amount in order to consume quality food and drinks that is good for their health. In
addition to this, if it is talking about customer choice, the people are now more aware and
concerned of their health and such trend has positive impact on mind set of customer. This will
help F&B sector to attain growth and development within a short span of time.
Convenience: It is determine that customers can easily pay the amount if the service is
provided to them wherever they want. Offering online orders and home delivery provide
customers large number of choice at a particular place of time (Saito, 2018). In addition to this,
it save the time of consumers and make it convenient to get food at their door place. If the
customer get food at their home easily, they usually prefer this option which develop positive
attitude and behaviour towards offering. It is evaluated that such trends increase the spending
level of customers and develop positive mind set towards particular restaurant.
Zero-plastic packaging: It is evaluated that such new trend of food and beverage sector
has both positive and negative impact on consumer choice and spending. Providing paper
packaging and grass packaging occurs high cost to company as compare to the polythene

packing. The company charge such amount from customers also and many of the customers did
not prefer to give extra amount of bags. There are some customer's who easily adopt such option
in order to save environment and protect their surroundings. This shows it has both negative and
positive impact on consumer buying behaviour and spending level as well.
Automation: It is determine that this new trend attract large number of people towards
restaurant that offering such service to customers in an effective manner. But it is analysed that
customers prefer such services once only and if they take, mostly did not prefer to repeat
purchase. Taking all this service incur cost to customers except the food they consume on
particular restaurant. It is analysed that such new trend has positive impact on consumer choice
& spending but up to a certain limit (Séraphin and Nolan, 2018).
From the above discussion, it is critically evaluated that some current trends of food and
beverage sector has positive impact on customer spending and choice whereas some has negative
impact. It is important for restaurant such as Fat Duck to analyse the impact and then adopt new
trends as it will help in increasing the level of customer base and enhance sales and profit margin
of entity in an appropriate manner.
CONCLUSION
The above analysis leads to the conclusion that hospitality sector is one of the most
rapidly evolving sectors across the globe. Food and beverage sector is a part of this industry. The
main aim of food and beverage businesses is thus acknowledged to be fulfilling the needs and
wants of customers in a manner such that they get persuaded to engage in repeat purchases.
Through entailment of customer satisfaction, the companies pertinent to this sector seek to gain
high level of revenues and profits in the long run. Market trends play a crucial role in shaping the
phase of this sector. The trends that emerge in market place with the course of time have resulted
into stimulation of demand for products and services offered to the customers in market place.
By aligning the business operations with the current trends in market, the food and beverage
companies strive to sustain in the hyper competitive market for a long period of time.

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